Depending if you are in the higher end residential business or purely commercial real estate, the tax bill is good or maybe bad. While there is more negotiation to do, especially on SALT, the basic deal seems to be done, subject to the super egos of the Republican senators like Collins, McCain and Corker who could ruin the whole thing again just as they did with Obamacare. Hopefully McCain got beaten up enough by his constituents over his antics on Obamacare, that he will not grandstand on the tax bill.
Collins is the other one who needs to understand that she alone does not get to decide what the bill says and she will vote yes even when it is not to her liking. Flake will probably vote yes despite his hate for Trump, and Corker then does not matter. Bottom line it will pass because all Republicans understand they are obliterated as a political party if they fail to pass tax reform. This is not Obamacare which impacted a relatively small number of voters. Taxes hits 100% of voters and cutting taxes is what gets you elected.
It seems from the first cursory read that real estate was spared a lot of the pain of some other eliminations of deductions, except if you are in the high-end residential business. For people like me who have residence in New York, and more than one high-end home where both income and property taxes are high, and where I have part of my business in a personal service business, the tax bill is a terrible hit. The $10,000 limit to property taxes is a very big hit to me, and the elimination of SALT is even worse.
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Joel Ross
Joel Ross began his career in Wall St as an investment banker in 1965, handling corporate advisory matters for a variety of clients. During the seventies he was CEO of North American operations for a UK based conglomerate, and sat on the parent company board. In 1981, he began his own firm handling leveraged buyouts, investment banking and real estate financing. In 1984 Ross began providing investment banking services and arranging financing for real estate transactions with his own firm, Ross Properties, Inc. In 1993 Ross and a partner, Lexington Mortgage, created the first Wall St hotel CMBS program in conjunction with Nomura. They went on to develop a similar CMBS program for another major Wall St investment bank and for five leading hotel companies. Lexington, in partnership with Mr. Ross established a hotel mortgage bank table funded by an investment bank, and making all CMBS hotel loans on their behalf. In 1999 he formed Citadel Realty Advisors as a successor to Ross Properties Corp., focusing on real estate investment banking in the US, UK and Paris. He has closed over $3.0 billion of financings for office, hotel, retail, land and multifamily projects. Ross is also a founder of Market Street Investors, a brownfield land development company, and has been involved in the acquisition of notes on defaulted loans and various REO assets in conjunction with several major investors. Ross was an adjunct professor in the graduate program at the NYU Hotel School. He is a member of Urban Land Institute and was a member of the leadership of his ULI council. In 1999, he conceived and co-authored with PricewaterhouseCoopers, the Hotel Mortgage Performance Report, a major study of hotel mortgage default rates.
